Saturday, July 27, 2024

CHIPOTLE CEO FINALLY ADDRESSES CUSTOMERS BIGGEST COMPLAINT

Fort Worth Star-Telegram

 

Chipotle CEO finally addresses biggest complaint from customers

BY PATRICIA BATTLE THESTREET

UPDATED JULY 25, 2024 6:32 PM

 

CEO Brian Niccol is letting customers know that he hears their complaints loud and clear. The CEO finally addressed the negative chatter surrounding the restaurant’s food portion sizes, which is a topic that recently went viral on social media, sparking controversy.

 

After Chipotle was accused of “skimping on ingredients” in a viral TikTok video in May that shows a customer storming out of a Chipotle restaurant after being unsatisfied with the amount of food an employee was putting in his burrito bowl, many TikTok users also began to share similar experiences with small portion sizes at Chipotle.

 

A theory that alleged that if customers filmed Chipotle employees putting food in their burrito bowls, they would get larger proportions of food went viral on social media. The theory stemmed from a leaked memo that Chipotle allegedly sent to employees admitting as much. As many customers began to test out this theory, some reported that they found luck in getting larger proportions of food, but Chipotle employees began to grow frustrated with being filmed without consent.

 

Even though Chipotle later denied shrinking its food proportion sizes and instructing employees to give customers more food if they spotted a camera, during a recent earnings call, Niccol further addressed the controversy.

 

“I want to take a minute to address the portion concerns that have been brought up in social media,” said Niccol during the call. “First, there was never a directive to provide less to our customers. Generous portion is a core brand equity of Chipotle. It always has been, and it always will be.”

 

Niccol also said that after surveying customers, the company found that 10% of its restaurants had “outlier portion scores,” and that those locations will undergo training.

 

“To be more consistent across all 3,500 restaurants, we have focused in on those with outlier portion scores based on consumer surveys, and we are reemphasizing training and coaching around ensuring we are consistently making bowls and burritos correctly,” said Niccol. “We have also leaned in and reemphasized generous portions across all of our restaurants as it is a core brand equity of Chipotle.”

 

The move from Chipotle comes after a study conducted by Wells Fargo analysts earlier this month found that food portion sizes of burrito bowls at Chipotle restaurants across New York City varied significantly.

 

According to the study, some of the Chipotle locations served burrito bowls that weighed 33% more than what they received at others. Out of all 75 burrito bowl orders, the heaviest one weighed in at 26.8 ounces, and the lightest was 13.8 ounces. The median weight of all bowls was 21.5 ounces.

 

The controversy comes after Chipotle announced in 2023 a “modest price increase” of menu items to “offset inflation” that would take effect this year. Chipotle also recently revealed that it increased its menu items in California by 6% to 7% due to the minimum wage increasing in the state.

 

Even though some customers took to social media to complain about the higher prices. It appears that sales at the company haven’t been negatively affected by the harsh feedback. In Chipotle’s second-quarter earnings report for 2024, the company revealed that its revenue increased by about 18%, its comparable restaurant sales also rose by roughly 11%.

 

Chipotle closed Thursday's session down nearly 2% following the release.

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